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damn.
oh well.
I am still going to stick with my plan... ride the variable for 6 months to see if the market recovers enough from the minibudget mayhem and whether inflation comes a bit under control, and move to a fixed in late Summer 2023.
Velocio-
ride the variable for 6 months
this is what I was thinking too when our deal ends in June
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ride the variable for 6 months to see if the market recovers enough from the minibudget mayhem and whether inflation comes a bit under control, and move to a fixed in late Summer 2023
I think this is smart unless you are close to an LTV band. If you'd be above, say, 90-95% LTV if your property declined 10% in value I would try and lock in before that happens.
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Would you not be better off going on to a tracker that doesn't have an exit fee, it'd give you the same flexibility but save you some cash in the meantime? (disclaimer - I've never had a tracker so might not know what I'm talking about?)
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You can put something in place to start from March which will be valid, or could be depending on the clauses, for 120 days. With no requirement to purchase this product.
February : "Hi my mortgage runs out in March, what can I switch to?"
"this rate and it's available for 120 days"
100 days later : "thanks, i'll take it because the world is burning" -
A bit late to this and it may already have been answered but when our rate ended we switched to a tracker at 0.75 above BOE base rate. Cost an arrangement fee but that is equivalent to the savings from the tracker vs std variable after 3 months. No exit fee so we can swap out anytime for a fix if the rates come down or ride the tracker for the full five years.
amey
NickCJ
Gewürzt
Chalfie
Ramsaye
It's worse than that. Because of the higher interest rate the capital paydown slows down, so you have more loan outstanding for longer at a higher rate: